McDonald's in Vietnam Term Paper by Nicky

McDonald's in Vietnam
A look at McDonald's potentially opening in Vietnam.
# 148984 | 2,043 words | 4 sources | APA | 2011 | US
Published on Nov 16, 2011 in Business (Companies) , Business (International)

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This paper investigates the feasibility of entering the Vietnamese market as a democratic and emerging economy in South Asia. The feasibility study covers several types of market entry, including foreign direct investment and franchising with no corporate owned business. The terms of operating a McDonald's franchise are discussed, which the paper describes as an opportunity for success if the franchise owner follows the company's guidelines. Additionally, the study discusses Vietnam's market reforms, particularly following the Vietnam war. These are further illustrated with charts and graphs. The advantages to operating in Vietnam are highlighted, with an emphasis on the low labor and administrative costs. Some disadvantages are noted as well, such as the Vietnamese population being unfamiliar with American food. The paper concludes by stating that McDonald's should enter the Vietnamese market, but it would be best to do this in stages.


Specific Competitive Advantages of Enterprise
Developing Foreign Country
Analysis of Entry Mode to be Used
Other Factors affecting Decision

From the Paper:

"The Vietnam War destroyed most of the country's economy. After the war, planned economy was adopted by the Government. The first market economy reforms were introduced in 1986 with the occasion of the Sixth Party Congress. The most worthy initiatives at that time referred to the encouragement of private ownership in industries, commerce and agriculture. The country reached 8% GDP growth between 1990 and 1997 and 7% between 2000 and 2005. Over the same period, foreign direct investment increased threefold. Nevertheless, Vietnam is a relatively poor country, with $1,040 GDP/capita (2008 estimates ), and with a relatively large number of persons living in deep poverty - also known as the percentage of population living with less than $1/day. On the bright side, the number of people living in deep poverty is decreasing substantially from one year to another and the inflation reached a stable 7-8%.
Following new land reforms, Vietnam become the largest cashew nuts producer with one third global market share and the second largest rice exporter in the world after Thailand. Other products included in the exports from this country include: coffee, rubber, tea and fishery. However, the agriculture's weight in GDP value was only 20% in 2006."

Sample of Sources Used:

  • IMF - International Monetary Fund, accessed June 09, World Economic Outlook - Vietnam.
  • Ministry of Foreign Affairs, accessed June 09,
  • Ministry of Planning and Investment:
  • Thuy, L. T. 2005. Technological Spillovers from Foreign Direct Investment: the Case of Vietnam. University of Tokyo,

Cite this Term Paper:

APA Format

McDonald's in Vietnam (2011, November 16) Retrieved September 26, 2020, from

MLA Format

"McDonald's in Vietnam" 16 November 2011. Web. 26 September. 2020. <>